Unfortunately for Tioga Downs owner Jeff Gural, he is learning it will take much more than re-submitting an application to obtain a casino license, and is willing to do whatever it takes to get that license. Gural is more than willing to spend, and spend an enormous amount at that.
Gural announced recently he has plans to inject an additional $1 million dollars into his charitable fund which helps the community. Most of the funds assist a food bank, local fire department, and special focus on local veterans. “This will be annually,” said Gural, “not just one time.” His original plan called for a donation of $500,000 to business development in the area as well, but he has upped the ante by an additional million dollars.
“I’m going to get this license. I’m not going to leave anything unturned. Anything that is needed to be done to get that license, if it makes sense, I will do,” Gural said. With Tioga Downs expected to rebid, the Gaming Facility Location Board has warned Gural he would need to submit a more expansive bid to have a shot at the license.
Gural intends to feature a Virgil’s barbeque restaurant, P.J. Clarkes, miniature golf, and batting cages at Tioga Downs. “At the end of the day, we are into a $200 million project,” said Gural. In addition, Gural intends to add an already planned 136-room hotel, spa, indoor pool, hot tub, and gym. Gural also said, “We’re prepared to hire over 650 employees over the next six months.” The casino would also have 1,100 to 1,200 jobs during the busy race season, in addition to the horsemen who spend money locally, according to Gural.
One worry about the snub of a license was that sister track Vernon Downs would close and be sold. However, Gary A. Greenberg, minority owner of Vernon Downs said it will still be subsidized by Tioga Downs, and that “the track will be open for business as usual for years to come.”
It surely can’t hurt to have the support of the Governor Andrew Cuomo, either for a Southern Tier license. Cuomo initially stated he would stay clear of the board’s deliberations, but after the Southern Tier license went to the Lago Resort and Casino in Tyre, he decided to show his support of an additional license with a December 26 letter to the board.
“Maybe we get a real blockbuster application that ends up in the Southern Tier, which is what we wanted,” Cuomo said. One hope from Cuomo is that groups who were rejected from other regions may resubmit an application for the “blockbuster” resort-casino. Cuomo added, “if only those past applications are resubmitted, which were failures in the first place, then nobody wins.”
Over in Massachusetts a casino license is currently being sought out in Somerset. Massachusetts Gaming Commission chairman Donald Setters made public the name of David Hanlon, who is behind the group seeking the license. Hanlon has had a career spanning over 30 years, which has seen him run large resort casinos in Las Vegas and Atlantic City, in addition to being president/CEO of International Game Technology.
The Board of Selectmen was still not sure whether or not Hanlon would follow through with the initial filing by the January 9 deadline, but Setters said, “The Board of Selectmen was very pleased with Dave Hanlon’s decision to move forward.” Setters also identified the 100-acres of town-owned land which would either be sold or leased to the operator/development group, extending from Wilbur Avenue at Brayton Point Road.
Hanlon’s career began in 1978 as CFO of Caesar’s World, and catapulted to the top as president of Harrah’s in Atlantic City, IGT, and Rio Suites Hotel Casino in Las Vegas. If the plan does move forward, a January 30 application requirement to the Gaming Commission would include a $400,000 nonrefundable deposit.
While parties in Southern Tier and Orange County are pushing for a fourth state appointed casino license, however, Senator Joseph A. Griffo is attempting to put a moratorium on any more licenses all together.
“New Yorkers were lured into voting for this process with the promise of more jobs, increased school aid, and lower property taxes,” Griffo said.
Griffo urged everyone to look at a rapidly changing economy, and the effect it has had on Atlantic City. Within just one year, four casinos closed causing a loss of 8,000 jobs. Media reports suggest since 2006 the city has lost $2.3 billion in gambling revenue. “Atlantic City, a tourist destination known for its gaming is now focusing on non-gaming events and businesses to boost its sagging economy,” said Griffo.
Griffo added, “I’m asking the state Gaming Commission to do their homework on what befell New Jersey and to collect more data to better project what each of the three recommended sites will have on the local and the New York state economy.”
According to Griffo, the most costly mistake made by the Location Board was awarding a license in Seneca County for the Lago Resort. Lago will be near Finger Lakes Gaming and Raceway, Turning Stone Resort Casino, Vernon Downs, Batavia Dows, and Seneca Nation casinos, which will lead to a cannibalization effect. The application for Lago even anticipated 50 percent of business would by siphoned off of other casinos, while independent groups have predicted the number in fact could be closer to 70 percent.
Griffo also attacked an independent study which suggested Lago would created roughly 1,227 jobs. The study, he said, doesn’t take into consideration an estimated 1,105 people will lose their jobs at surrounding facilities. Griffo also said, “Video lottery terminal facilities return up to 79 percent of their revenue to the state, much of which goes to fund education. Lago would only be required to pay 37 percent. Every dollar Lago takes from Finger Lakes and Batavia Downs, that’s less we can collect in local and state taxes.”
If the Gaming Commission is unwilling to place a moratorium on granting licenses, Griffo at least wants the number of licenses to be reduced to two or fewer, and given to areas most in economic need, such as the Southern Tier or Catskills.
